1. The Tenant filed an assignment in bankruptcy on April 30, 2008.
2. The Landlords and Tenant entered into a mediated agreement on May 1, 2008, which included arrears from February 1, 2008 to May 31, 2008.
3. The Landlords subsequently made a claim to the Trustee in Bankruptcy for the same arrears for the period from February 1, 2008 to May 31, 2008.
4. The Landlords applied for termination of the tenancy along with the payment of arrears.
5. The Bankruptcy and Insolvency Act, R.S.C. 1985, B-3, as amended, (BIA) under section 69.3 causes an automatic stay in proceedings when there has been an assignment in bankruptcy. As a result, I find that the original application, SWL-13890 was stayed when the Tenant made an assignment into bankruptcy and therefore the Landlord and Tenant Board had no jurisdiction to order termination and payment of arrears in SWL-16920 because it is based on SWL-13890 which is stayed as a result of the assignment in bankruptcy.
3. I am satisfied on a balance of probabilities that the Board’s order TSL-97152-18, issued January 7, 2019 contains a serious error. Specifically, I find that the Member erred by dismissing the application because the Tenant was discharged from bankruptcy on July 25, 2017, within the first rental period for which the Landlord claims arrears.
4. However, for the purpose of this application, the relevant date in the Tenant’s bankruptcy proceedings is the day when there was an assignment in bankruptcy – i.e. June 21, 2017. Pursuant to section 69.3 of the Bankruptcy and Insolvency Act, the assignment resulted in an automatic stay of proceedings up to the assignment date. However, the first rental period covered by the N4 Notice of Termination begins after the assignment date, on July 1, 2017. Therefore, the stay does not impact this application or the Board’s proceedings and the application should not have been dismissed. Accordingly, the Landlord’s request to review is granted.